Centre relaxes IT Act Section 269ST on hospitals, medical sectors providing COVID relief

Amid a storm of COVID-19 cases in the country, the Government has announced to relax provisions of Section 269ST of Income-Tax Act, 1961. This will allow hospitals and other medical facilities providing COVID treatment to patients to receive cash payments of Rs 2 lakh or more. The time period of the relief is from 01.04.2021 to 31.05.2021 on obtaining PAN or AADHAAR of the patient and the payer. 

The Government has issued a notification for the same. 

"The Central Government, in exercise of powers conferred by clause (iii) of Provision to Section 269ST of the Income-tax Act, 1961, hereby specifies hospitals, dispensaries, nursing homes, Covid Care Centres or similar other medical facilities providing Covid treatment to patients for the purpose of Section 269ST of the Income-Tax Act,1961 for payment received in cash during 01.04.2021 to 31.05.2021, on obtaining the PAN or AADHAAR of the patient and the payee and the relationship between the patient and the payee by such hospitals, dispensaries, nursing homes, Covid Care Centres or similar other medical facilities," said the government in the notification.

Other relief work announced by the Government

Earlier the finance ministry had reduced the Integrated Goods and Services Tax (IGST) rate on the import of oxygen concentrators for personal use from 28 per cent to 12 per cent as there was a huge shortage of life-saving equipment. The reduced IGST rate was applicable till June. Currently, the country is facing a huge crisis of COVID-19 and the Government has swung into action to relax the situation as much as it can. The production of oxygen and other COVID-19 related essentials have also been ramped up with states taking curbs like lockdown to control the spread. 

India COVID-19 cases

India on Friday again recorded over 4 lakh new Covid-19 cases, taking the country’s total caseload to over 2.18 crore. There are 37 lakh active cases while over 1.79 crore people have recovered. With 4,187 new deaths, the toll now stands at over 2.38 lakh. Maharashtra, Karnataka, and Kerala are reporting the highest fresh cases with 54,000, 49,000, and 38,000 cases respectively. Tamil Nadu is the latest state that has announced a complete lockdown.